When a Change in Accounting Policy Occurs

Multiple Choice

When a change in accounting policy occurs,

A) nothing should be done.
B) the new policy should be used in reporting the results of operations of the current year, and the cumulative income effect net of tax should be reflected on the statement of retained earnings as an adjustment to the opening balance.
C) the cumulative effect of the change in policy should be reflected on the income statement as of the beginning of the next year.
D) the cumulative effect of the change in accounting policy should be classified as an extraordinary item on the income statement.